Brown & Brown (BRO) AI Stock Analysis

• Market Cap: $23.24B
• Dividend Yield: 0.77%
• Average Volume (3M): 3.44M
• Price to Earnings (P/E): 23.4
• Beta (1Y): 0.40
• Revenue Growth: 17.87%
• EPS Growth: -9.35%
• Country: US
• Employees: 17,403
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Brokers
• EPS (TTM): 0.93
• Shares Outstanding: 340,420,000
• 10 Day Avg. Volume: 2,671,860
• 30 Day Avg. Volume: 3,438,761
• PEG Ratio: -10.20
• Price to Book (P/B): 1.97
• Price to Sales (P/S): 4.15
• P/FCF Ratio: 17.88
• Enterprise Value/Market Cap: 1.31
• Enterprise Value/Revenue: 5.16
• Enterprise Value/Gross Profit: 8.65
• Enterprise Value/Ebitda: 14.86
• 1Y Price Target: $82.64
• Price Target Upside: 21.07% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 14
• EPS Forecast (FY): 4.53
• Revenue Forecast (FY): $7.19B

• Rating: 70 Outperform
• Price Target: $79.00 ▲(15.73% Upside)
• Action: Upgraded Date: 03/05/26
• Date: Action: Upgraded 03/05/26

The score is primarily supported by strong financial performance (solid growth, high margins, and sharply improved leverage). This is tempered by weak technicals (below key long-term moving averages with negative MACD) and only moderate valuation support. Earnings call factors are net-positive but include meaningful near-term execution and margin headwinds tied to Accession integration, lower investment income, and contingent/recruiting variability.

Positive Factors

Durable revenue growth & high margins

Sustained top-line expansion with premium-level operating and net margins indicates resilient core brokerage economics. Durable fee/commission mix and diversified product lines support cash flow and reinvestment capacity, helping absorb cyclical insurance pricing shifts over 2–6 months.

Materially strengthened balance sheet

Sharp leverage reduction materially lowers financial risk and interest exposure, increases funding optionality for bolt-on M&A, dividends, or buybacks, and provides a durable buffer versus macro shocks while preserving long-term strategic flexibility.

Strong cash generation and active M&A engine

Robust FCF finances growth without over-reliance on leverage, enabling repeatable acquisition-led scale and cross-sell. A proven M&A cadence plus targeted synergies supports durable revenue and profit expansion over multiple years when integrations execute as planned.

Negative Factors

Contingent commission volatility

A meaningful share of revenue and cash derives from contingent commissions tied to underwriting cycles and storm activity. This structurally increases quarter-to-quarter earnings volatility and complicates margin sustainability and forecasting across the medium term.

Accession integration & acquisition dilution risks

Large strategic M&A delivers revenue but creates multi-year integration execution risk and near-term margin drag. Considerable share issuance and acquisition financing dilute per-share metrics and can depress ROE unless earnings scale as planned over the integration horizon.

Lower investment income pressure on margins

Declining investment returns are a structural headwind to overall profitability because non-operating income has backed up margins historically. With operating margins normalizing, weaker investment income will reduce total margin resilience and constrain excess cash available for discretionary uses.

Brown & Brown Business Overview & Revenue Model

Company Description

Brown & Brown, Inc. markets and sells insurance products and services in the United States, Bermuda, Canada, Ireland, the United Kingdom, and the Cayman Islands. It operates through four segments: Retail, National Programs, Wholesale Brokerage, and Services. The Retail segment offers property and casualty, employee benefits insurance products, personal insurance products, specialties insurance products, loss control survey and analysis, consultancy, and claims processing services. It serves commercial, public and quasi-public entities, professional, and individual customers. The National Programs segment offers professional liability and related package insurance products for dentistry, legal, eyecare, insurance, financial, physicians, real estate title professionals, as well as supplementary insurance products related to weddings, events, medical facilities, and cyber liabilities. This segment also offers outsourced product development, marketing, underwriting, actuarial, compliance, and claims and other administrative services to insurance carrier partners; and commercial and public entity-related programs, and flood insurance products. It serves through independent agents. The Wholesale Brokerage segment markets and sells excess and surplus commercial and personal lines insurance through independent agents and brokers. The Services segment offers third-party claims administration and medical utilization management services in the workers' compensation and all-lines liability arenas, Medicare Set-aside, Social Security disability, Medicare benefits advocacy, and claims adjusting services. The company was founded in 1939 and is headquartered in Daytona Beach, Florida.

How the Company Makes Money

Brown & Brown generates revenue primarily through commissions and fees earned from the sale of insurance products and services. The company acts as an intermediary between clients and insurance carriers, receiving a commission based on the premiums paid by clients for their insurance policies. Additionally, it earns revenue through consulting services, providing risk management advice, and other related services. The company's revenue model is further supported by its strategic acquisitions of smaller brokerage firms, which not only expand its market reach but also enhance its service offerings. Significant partnerships with various insurance carriers also play a crucial role in its earnings by allowing Brown & Brown to offer a wide range of products tailored to the needs of its clients.

Brown & Brown Financial Statement Overview

Summary

Strong overall fundamentals driven by durable revenue growth and high profitability (TTM operating margin ~28.5%, net margin ~17.8%) plus a materially improved balance sheet (debt-to-equity ~0.08 TTM after large debt reduction). Offsets include margin normalization versus 2024 and a softer ROE (~9.7% TTM), while cash flow is solid but operating cash flow-to-debt is modest (mitigated by the much lower debt level).

Income Statement

Income performance is strong, supported by solid growth and consistently high profitability. Revenue rose from $2.6B (2020) to $4.7B (2024), and is $5.9B in TTM (Trailing-Twelve-Months), with the TTM revenue growth rate at 10.9%. Profitability remains attractive with TTM operating profit margin at ~28.5% and net profit margin at ~17.8%. The main watch-out is some margin normalization versus 2024 (net margin ~21.1% in 2024 vs. ~17.8% TTM), indicating profitability can fluctuate even as revenue expands.

Balance Sheet

The balance sheet has strengthened materially, with leverage improving sharply in TTM (Trailing-Twelve-Months). Total debt declines from roughly $4.0–$4.2B (2022–2024) to $1.0B TTM, while equity increases to $12.6B TTM (vs. $6.4B in 2024), driving debt-to-equity down to ~0.08 TTM (from ~0.63 in 2024). Returns on equity are solid but have eased to ~9.7% TTM from mid-teens levels in 2021–2024, suggesting the higher equity base is diluting returns unless earnings continue to scale.

Cash Flow

Cash generation is generally healthy with good conversion of earnings into cash. Free cash flow is $1.45B in TTM (Trailing-Twelve-Months) and has grown 7.6% TTM, and free cash flow tracks net income closely (free cash flow to net income ~1.0 TTM; ~0.90–0.95 historically). The key weakness is that operating cash flow is modest relative to total debt across periods (operating cash flow to total debt ~0.17–0.36 historically and ~0.17 TTM), though this risk is somewhat mitigated by the much lower absolute debt level in TTM.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.96B	4.71B	4.20B	3.56B	3.05B
Gross Profit	5.22B	2.30B	2.01B	1.75B	1.41B
EBITDA	2.04B	1.73B	1.55B	1.21B	980.70M
Net Income	1.05B	993.00M	870.50M	671.80M	587.10M
Balance Sheet
Total Assets	29.99B	17.61B	14.88B	13.97B	9.80B
Cash, Cash Equivalents and Short-Term Investments	1.08B	685.00M	711.00M	662.00M	706.10M
Total Debt	7.92B	4.06B	4.02B	4.18B	2.25B
Total Liabilities	17.42B	11.18B	9.30B	9.37B	5.60B
Stockholders Equity	12.55B	6.44B	5.58B	4.61B	4.20B
Cash Flow
Free Cash Flow	1.38B	1.09B	941.00M	829.00M	763.80M
Operating Cash Flow	1.45B	1.17B	1.01B	881.00M	808.80M
Investing Cash Flow	-7.91B	-898.00M	-587.00M	-1.91B	-396.80M
Financing Cash Flow	7.71B	-64.00M	-187.00M	1.73B	-210.10M

Brown & Brown Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 68.26
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BRO, the sentiment is Negative. The current price of 68.26 is below the 20-day moving average (MA) of 70.29, below the 50-day MA of 73.35, and below the 200-day MA of 87.94, indicating a bearish trend. The MACD of -1.05 indicates Positive momentum. The RSI at 42.82 is Neutral, neither overbought nor oversold. The STOCH value of 13.60 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BRO.

Brown & Brown Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ERIE	74 Outperform	$11.50B	23.87	25.30%	1.90%	9.64%	15.87%
AON	71 Outperform	$68.86B	20.54	45.99%	0.82%	14.06%	5.52%
BRO	70 Outperform	$23.24B	23.44	9.72%	0.77%	17.87%	-9.35%
AJG	69 Neutral	$53.46B	45.10	6.50%	1.01%	17.17%	19.12%
WTW	68 Neutral	$27.37B	20.06	20.10%	1.14%	―	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Brown & Brown Corporate Events

Brown & Brown Adopts 2026 Executive Incentive and Equity Plan

On February 26, 2026, Brown & Brown’s board compensation committee adopted a 2026 annual cash incentive program for top executives, tying 40% of payouts to organic revenue growth, 40% to adjusted EBITDAC margin, and 20% to individual objectives, with potential payouts ranging from 0% to 200% of target amounts that reach up to $5.5 million for CEO J. Powell Brown. On March 3, 2026, the committee also approved substantial long-term equity awards, including performance-based restricted stock and stock units whose vesting depends on multi-year share price and earnings-per-share growth relative to S&P 500 performance, signaling a strong emphasis on aligning executive rewards with sustained shareholder returns and long-horizon financial metrics.

The most recent analyst rating on (BRO) stock is a Buy with a $85.00 price target. To see the full list of analyst forecasts on Brown & Brown stock, see the BRO Stock Forecast page.

Brown & Brown Updates 2026 Investor Presentation and Risks

Brown & Brown, Inc. disclosed that its management may periodically use a 2026 company overview investor presentation, furnished with a recent Form 8-K, in meetings with institutional investors, analysts, and at investor conferences. The company emphasized that the materials are being furnished rather than filed for securities law purposes, and it outlined extensive risk factors and the use of non-GAAP financial measures to help investors evaluate its performance and understand potential variability in future results.

The release highlighted numerous operational and financial risks, including integration and financing risks tied to the acquisition of RSC Topco, Inc., cybersecurity threats, acquisition execution challenges, regulatory changes, and macroeconomic pressures that could materially affect results. Brown & Brown also explained that it uses a range of non-GAAP metrics, such as organic revenue and various adjusted profitability and leverage measures, to supplement GAAP results for the investment community, signaling a continued focus on communicating underlying operating performance despite earnings volatility and one-time items.

The most recent analyst rating on (BRO) stock is a Buy with a $85.00 price target. To see the full list of analyst forecasts on Brown & Brown stock, see the BRO Stock Forecast page.